NEXTDC Surges 30% in Contracted Utilisation, Boosts FY25 Capex Guidance
NEXTDC reports a significant 30% jump in contracted utilisation to 228MW, driven by strong AI deployments in Victoria, prompting a $100 million increase in FY25 capital expenditure guidance.
- Contracted utilisation rises 30% to 228MW as of March 31, 2025
- Victorian data centres lead with largest AI deployment at 114MW
- Pro forma contracted capacity up 54% to 127MW
- FY25 capital expenditure guidance increased to A$1.4–1.6 billion
- Net revenue and EBITDA guidance remain unchanged
Strong Demand Fuels Contracted Utilisation Growth
NEXTDC Limited (ASX:NXT) has announced a robust 30% increase in contracted utilisation, climbing by 52MW to reach 228MW as of 31 March 2025. This surge is predominantly driven by the Victorian data centre ecosystem, which now hosts the company’s largest AI utilisation deployments to date, accounting for 114MW, an impressive 161% of the region’s pro forma contracted capacity at the end of 2024.
AI Deployments Reshape Data Centre Demand
The company’s CEO, Craig Scroggie, highlighted the transformative impact of artificial intelligence on data centre infrastructure demand. Hyperscale customers are rapidly scaling AI-native infrastructure, reshaping the industry landscape and driving unprecedented utilisation growth. NEXTDC’s Victorian centres have become a focal point for these deployments, underscoring the strategic importance of this region within the company’s portfolio.
Forward Order Book and Financial Outlook
Reflecting these strong customer wins, NEXTDC’s pro forma contracted capacity has surged by 54% to 127MW since December 2024, setting a new record for the forward order book. While the majority of revenue from these contracts is expected to materialise from FY28 onwards, the company anticipates a full run rate commencing in FY27 following the completion and commissioning of new data halls.
Capital Expenditure and Funding Strategy
To support this accelerated growth, NEXTDC has increased its FY25 capital expenditure guidance by A$100 million, now targeting a range of A$1.4 billion to A$1.6 billion. This reflects the need to build and deploy additional capacity aligned with new customer contracts. Despite the increased capex, the company maintains its net revenue and underlying EBITDA guidance for FY25, signalling confidence in its operational execution.
Financially, NEXTDC remains well-positioned with liquidity of A$2.5 billion and a modest gearing ratio of 8.8% as of December 2024. The company plans to refinance and secure new senior debt facilities in the first half of FY25 to fund its capex requirements, aiming to establish a common debt platform that supports its expansion strategy.
Looking Ahead
NEXTDC’s announcement underscores the accelerating demand for data centre capacity driven by AI and hyperscale customers, positioning the company at the forefront of Australia’s digital infrastructure growth. The increased capex and strong forward order book highlight a confident outlook, though the timing of revenue realisation remains a key factor to monitor as new facilities come online.
Bottom Line?
NEXTDC’s growth trajectory is clear, but the market will watch closely as new capacity and revenue streams come online in the coming years.
Questions in the middle?
- How will NEXTDC manage the timing gap between capex outlays and revenue realisation?
- What are the terms and impact of the planned refinancing on the company’s financial flexibility?
- Can NEXTDC sustain this growth momentum amid evolving AI infrastructure demands?
